Europe's Banks Can't Do Draghi's Bidding - Bloomberg View

Europe's Banks Can't Do Draghi's Bidding - Bloomberg View



...One sign of a changed banking environment is that bank deposits remain at their 2008 levels while banks notes in circulation have nearly doubled. The decline of banks as a repository for short-term cash has gone hand-in-hand with decreased lending to the real economy...



... Negative interest rates since have not helped; theyencourage banks to pursue higher reward (and higher risk) opportunities...



... NPLs are estimated at 4 percent in France, 7 percent in Spain and as high as 17 percent in Italy. This compares to NPL levels of 2 percent in Germany, and just over 1 percent in the U.S...